-Jordan has two goods that he consumes this week. He can choose to go to the arcade and play video games or he can purchase baseball cards. The price of each video game is $.50 and each pack of baseball cards is $1. Jordan will spend all his allowance this week on these two goods. Jordan's consumption possibilities are listed in the table above. For Jordan, what is the opportunity cost of moving from consumption possibility D to E?
A) one set of baseball cards
B) three sets of baseball cards
C) four video games
D) two video games

Question

-Jordan has two goods that he consumes this week. He can choose to go to the arcade and play video games or he can purchase baseball cards. The price of each video game is $.50 and each pack of baseball cards is $1. Jordan will spend all his allowance this week on these two goods. Jordan's consumption possibilities are listed in the table above. For Jordan, what is the opportunity cost of moving from consumption possibility D to E?
A) one set of baseball cards 
B) three sets of baseball cards 
C) four video games 
D) two video games

Quizplus · Accepted Answer

The opportunity cost of moving from consumption possibility D to E is two video games. This is because Jordan must give up two video games in order to purchase one set of baseball cards.

-Jordan Has Two Goods That He Consumes This Week